Every post in the Jargon, Decoded series that needs a worked example uses the same fictional company, so the numbers stay familiar as you move from one concept to the next. This page is the reference — individual posts link back here instead of re-explaining the business or re-pasting the statements.

Desi Bites Foods Pvt Ltd is not a real company — it’s a fictional packaged namkeen & snacks manufacturer, built as a fully reconciled three-statement model (the balance sheet balances every year; the cash flow statement ties exactly to the balance sheet’s cash figure) so the arithmetic behind every ratio actually works out the way it would for a real business. Nothing on this page is investment advice — see the privacy & disclaimer policy.

The business

Desi Bites makes packaged namkeen and snacks, sold under its own brand to distributors across a few states. One manufacturing unit, one product line, nothing exotic — no subsidiaries, no foreign currency, no complex segments. It sells to distributors on roughly 30 days’ credit and buys raw material (edible oil, flour, spices, packaging) on roughly 40 days’ credit. A term loan funded a plant expansion, drawn further in FY24 and being paid down since. All figures below are in ₹ Lakh, for the year ended 31 March.

Income Statement

  FY23 FY24 FY25
Revenue 1800 2160 2592
COGS 1152 1361 1607
Gross Profit 648 799 985
Operating expenses 396 464 544
EBITDA 252 335 441
Depreciation 90 100 115
EBIT 162 235 326
Interest 45 48 47
PBT 117 187 279
Tax 29 47 70
PAT (Net Profit) 88 140 209
Dividend paid 26 49 84

Balance Sheet

  FY22 (opening) FY23 FY24 FY25
Net fixed assets 630 640 690 655
Inventory 140 158 186 211
Trade receivables 135 148 178 199
Cash & bank 60 111 178 280
Total Assets 965 1057 1232 1345
Equity (capital + reserves) 400 462 553 678
Term loan 400 410 460 400
Trade payables 115 126 149 185
Other current liabilities* 50 59 70 82
Total Liabilities + Equity 965 1057 1232 1345

* tax payable and accrued expenses, bundled into one line for simplicity — a real filing splits these out further, and splits the term loan into its current and non-current portions. Equity Share Capital is a constant ₹100L the whole way through (10 lakh shares of ₹10 face value), set up now so per-share numbers have clean figures to work with once the valuation posts introduce a hypothetical listing.

Cash Flow Statement

  FY23 FY24 FY25
Cash from Operations 167 216 326
Cash from Investing -100 -150 -80
Cash from Financing -16 1 -144
Net change in cash 51 67 102
Closing cash 111 178 280

Built with a simplified indirect method — starting from PAT and adjusting for depreciation and working-capital movements — rather than a full Ind-AS presentation. Good enough to show how the three statements connect, which is the point of a case study like this.

A note on the numbers

These statements were built as a single reconciled model, not typed in separately — the balance sheet balances to zero in every year (including the FY22 opening position) and cash flow ties exactly to the balance sheet’s cash figure. If a post ever shows a ratio that doesn’t match what you calculate from these tables, that’s a bug — let us know.